Sino Gold Mining Ltd., owner of China's second-largest gold mine, said second-quarter output at the Jinfeng operation rose more than threefold as a greater volume of ore was mined.

    Production rose to 35,412 ounces in the three months ended June 30, from 9,840 ounces a year earlier, Sydney-based Sino said today in a statement. The mine, in China's southern Guizhou province, is forecast to produce between 150,000 and 160,000 ounces this year, it said.

    Sino Gold Chief Executive Officer Jake Klein aims to add four gold mines in China to boost total annual output to more than half a million ounces. The company sold A$204 million ($199 million) in shares last quarter to close its forward sales contract to take advantage of rising bullion prices.

    The $55 million cost of building the White Mountain mine may climb as much as 15 percent because of rising material costs and local currency gains, Sino said today. First output is due early 2009, it said.

    Sino was unchanged at A$5.46 yesterday on the Australian stock exchange, vauling the company at A$1.6 billion ($1.56 billion).